Rumor: Ektron Deal Could Include Merger With European CMS Vendor EpiServer [Update]

As still the Ektron story we have been following more than the previous week hasn’t been complicated enough, we started consideration rumors yesterday that the contract really includes another part. The company could be integration with Stockholm-based Web-content organization wholesaler EpiServer

as measurement of the contract

The story, if it turns out to be right, underscores some of the troubles that venture startups are having in areas that are appropriate more and more commoditized, forcing them into consolidation acts as a path to development.

CMS cable first reported the buzz yesterday. We’d been hearing the same thing ourselves but have been unable to confirm it.

An EpiServer spokesperson would neither confirm nor deny the rumour. “Thanks for attainment out, however, I have nix comment,” the representative said in an email.

For what it’s worth, Ektron leader Tim McKinnon told CMS cable he didn’t know something about a merger, but certain his rejection of the Ektron sale on Friday and later backtracking, it’s hard to know what to believe.

To give several context here, both of these companies create web content management systems (WCM), enterprise software that helps manage a company’s web and digital presence. WCM is at present very a great deal in flux as the industry shifts from a clean web focus to a broader multi-channel view, with a superior emphasis on mobile procedure and resident apps. And this is more than ever significant today as companies see mobile apps and digital conversion in general as a aggressive differentiator.

What’s more, the WCM industry is becoming increasingly commoditized as companies share a common set of functionalities. As such, it’s becoming difficult for vendors to differentiate themselves in a highly competitive marketplace. When an industry commoditizes like this, mergers and acquisitions tend to follow.

Ektron is based in the US with head office in Nashua, NH, while EpiServer’s head office are in Stockholm, Sweden, but in spite of their unusual locations they have a lot in common. They are every one owned by private justness firms, Ektron’s primary possessor being Accel-KKR, while EpiServer’s is IK Investment Partners. In totaling, both formulate .NET-based web at ease management systems.

Ektron clients include Microsoft, NASDAQ, Walmart, nationwide Geographic and John Hancock Long-term indemnity. EpiServer customers include Pizza Hut, GlaxoSmithKline, Kellogs and British Telecom.

Update: We are consideration chatter this sunset that EpiServer will be purchased through Accel-KKR, but that it’s feasible the two companies will stay put detach entities in spite of this. While it’s at rest feasible the 2could be shared at some position, just because two similar companies are owned by the same compact is no guarantee they will be collective.